Part A: Prepare and deliver a presentation
Using the simulated business information provided and in response to a scenario, you will prepare and deliver a presentation to the management team on proposed continuous improvement strategies to be deployed in work teams; proposed systems to communicate to stakeholders; proposed approaches to meeting sustainability requirements; proposed approaches to coaching continuous improvement; and strategies for knowledge management. You will then submit a summary report. You will also prepare a monitoring strategy to monitor progress on the implementation of the continuous improvement system, a communication strategy, and several relevant procedures.
Research, plan and deliver a 20-minute presentation to a peer group of managers on proposed continuous improvement (CI) systems and processes.
Review the following scenario.
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You are a continuous improvement consultant. Australian Hardware has contracted you to analyse the business in order to propose an overall approach to continuous process improvement, including a general methodology such as Lean or Six Sigma. The approach will be used across the business, including application to areas such as: sustainability across the organisation revenue per customer interaction operational costs customer service satisfaction across product areas such as timber, plumbing and electrical, garden products, hardware, tools and home-wares delivery lead times for customers. You will need to consider the appropriateness and applicability of different continuous improvement methodologies in order to find the best fit for Australian Hardware. In your overall approach, you will need to develop several supporting strategies and procedures. You intend to trial your proposed quality systems and processes at the Wollongong store. You will need to gather feedback from the management team on your proposed continuous improvement approach. In accordance with organisational practice, you will need to prepare a summary report incorporating feedback and suggestions for amendments and refinements. |
Review Australian Hardware documentation, including strategic plans and operational plans. Note what the organisation does, how it does it, what its goals and objectives are, and who its stakeholders and customers are.
Review Australian Hardware documentation
Details of the business
The Australian hardware is located in Sydney, NSW, due to the growing need of hardware materials for residential and commercial building and home improvements, the hardware is continuously growing.
Australian Hardware is among the largest hardware’s in Australia whereby it has more than 138 stores and it has employed more than 10,000 individual across the country. Its first store in 1921, known as Percy’s Home Goods located in Sydney, the store deals with the manufacture and sale of household furniture’s. In 1982, Australian Hardware got listed in the Australian Stock Exchange whereby it had a float on public shares and the public could buy the shares.
The Australian hardware is partly owned by the greenwright family whereby they are the CEOs and board of directors in the company.
The company deals with a range of products namely from timber, hardware products, home improvements, gardens and paints
Mission: The mission of the company is to provide quality homewares, hardware, building materials, it is committed to provide its customers with value for their money through quality products, low prices, engagements, expert services and solutions and environmental responsibility.
Vision: to be the leading hardware and best home improvement company in Australia
The success of the Australian Hardware success is not only measured through sales but also in how it achieves its goals and achievements. The company is committed to uncompromising values and also ensures integrity that guide their decisions and goals. The core values that measure their success are;-
Ownership and Product Range in the Hardware
Customer Focus- providing good services and paying attention to customer needs, this will help retains and grows their customer base.
Performance- the company strives to give the best
Business Ethics- the company is built on trust and honesty throughout their engagements and customer relationships
Development- the company believes on ongoing trainings and employee development, this enables employees to increase their potential for the purpose of achieving the company’s goals
Teamwork- helping others ensures continued success
Community and environmental responsibility – the company strives working around the community and ensuring sustainable practices.
Strategic decisions
- Increasing sales volume and gross profit
- Maintaining and increasing the market share
- Controlling direct and indirect operational cost
- Maintaining superior products and standard quality services
- Ensuring that the hardware’s reputation are both socially and environmentally responsible
There are various goals and action plans that help in supporting the strategic decisions to be achieved, these are;-
- Marketing objectives e.g. increasing website traffic , driving sales
- Sales training objectives e.g. training staff on customer service and task
- Financial objectives such as reducing overheads in stores and decreasing cost of sales
Research or review continuous improvement methodologies and tools and identify strategies for improving quality and performance in targeted areas. You will need to select and prepare for discussion in your presentation:
A continuous improvement methodology, such as TQM, Lean and Six Sigma to apply to the organisation
Lean manufacturing focuses on improving productivity while reducing waste during the manufacturing processes, it uses five systems these are; – inventory control, quality improvement, and maintenance improvement and set up improvement. The wastes that lean manufacturing reduce are over production, inventory, transportation and processing inefficiency such as defects and motions.
In the Australian hardware they is need to define their waste such as defective products or unusable products recognizing waste is the first step towards achieving a lean system this can be done through;-
- Designing a simple manufacturing system- this will help in reducing the inventory at the hardware and also increase productivity as the staffs are only operating with products that they can handle, this also helps in increasing efficiency.
- Creating room for improvement- in some cases there is no need to term something as waste for example products that do not add value to the customer, this waste can either be reduced or eliminated
- Continuous improvement of the system- to make the lean system work, there is need to have continuous improvement and innovation, tis can be done by constantly evaluating the external and internal processes of the hardware.
- Implementing the 5S system- this 5s system helps in prepping the Australian hardware to make changes in the lean system during implementation. The 5S are in Latin and include,
Seiri (clearing) – tis is decluttering at the workplace and ensuring that the hardware will keep just what it needs
Seiton (organizing)- the hardware will be required to organize their tools in the order of priority to the most important to the least, this will help in accessibility.
Seiso (cleaning) – making sure the work environment, equipment and machines are clean
Seiketsu (standardization) – ensuring that processes within the hardware are clear, organized and cleaned.
Shitsuke (training) – to allow a smooth implementation of the organization process and procedures there is need for the staff to be well trained as this will create room for efficiency
It is also important that all the staff at the Australian hardware to be trained concerning the lean system as this will ensure that it is successfully implemented. The training should be conducted starting from the top management down to supervisory and then the employees.
Problem/opportunity identification and decision-making tools, such as value stream mapping, root cause analysis and brainstorming.
Operational plans
The Australian hardware should consider the fishbone tool for problem/ opportunity identification, this tool will help in identifying what causes the problems, the effects and possible solutions. The procedures that the fishbone diagram uses are;-
- Identifying the problem
- Agreeing on the problem that has been identified, this will be written at the centre of a whiteboard, whereby a box will be drawn on it
- Brainstorming on the major categories that caused the problem, this will be done by highlighting major headings such as Methods, Machines(equipment), people (manpower), materials and environment
The strategies that will be used to include and encourage participation of the right individual at the Australian Hardware are participative culture and interpersonal skills. Creating a participative culture will include having a secure management, values, commitment, measuring and rewarding commitment. The interpersonal skills will involve the use of verbal and non-verbal communication, ensuring that employees are active listeners and advocating for team problem solving, asserting for proper values and decision making.
Strategies for building ownership and a work culture that is conducive to improving quality, reducing waste and high performance.
To build ownership and a good work culture, there is need for the Australian hardware to implement reward and recognition among its employees; this will help improve employees participation that will result to improving the productivity of the company. Employees that are reward appropriately will provide quality work, reduce waste and will have high performance.
This includes;-
- The hardware management should emphasize more on efforts rather than abilities
- Following up on feedbacks from customers
- Devising clear goals such as commitment to deadlines and benchmarking
Analyse the impact of your proposed introduction of continuous improvement measures on the organisation as an integrated whole. In particular consider, for discussion in your presentation, the impact on:
Communications to various stakeholders
There is need to have a communication plan that will facilitate communication between stakeholders, the communication plan will ensure the hardware is supported in achieving their goals and objectives, improving operation effectiveness, improving relationships and delivering deliverables. Having the communication plan amongst stakeholders is a public relation plan that will also advertise and market the hardware.
Knowledge management and information flow, including information technology relevant to document storage and sharing
There is need to have a check list on the continuous improvement tis will help to regularly update the strategic plan that will help in accommodating any improvements that will be made. Once the improvements have been done there is need to ensure they are incorporated in the business plan and strategic objectives of the hardware, the improvements that will be done in the organization.
The strategic plan document will describe the improvements that will be done such as the hardware’s perspectives, quality control, cost reduction and improving productivity. The plan will also help n allocating the appropriate funds towards the company’s budget.
The use of information technology in document storage will help facilitate in e-storage by using tools such as computer storage.
Strategic decisions
Sustainability and sustainability objectives
Most organization first focus on reducing environmental operations as this will help in reducing sustainability and also develop policies and procedures in sustainable development. The policies and procedures will help in complying with the international and national legislation on waste reduction sustainability is an important aspect in continuous improvement as this will ensure all processes meet sustainable objectives. The sustainability requirements that an organization is required to comply with include;-
- Social responsibility
- Waste treatment
- Waste management
- Environmental management
Performance management, including setting goals and KPIs, monitoring, training and coaching, and rewards and recognition
Performance management will focus on the Key Result Area (KRA) and KPIs, KRA is important within the Australian hardware as this will help in defining the scope of the job and the organization goals.
Key Result Area (KRA):- KRA in Australian hardware is the operational cost
KPI:-KPI is to reduce the operation cost by 10%. This will be measured within a period of 6 months to determine its success.
Monitoring: – to monitor the reduction of the operation cost it will be done through reports detailing on the operation expenses at the hardware.
Training and coaching;- there is need to conduct training mong the staff and this will be done using flexible methods such as online trainings
Rewards and recognition: – there is need for the company to reward and recognize its employees through incentives, recognition or promotions. This will be done in steps by first determining what needs to recognized and the appraisal structures
The Australian hardware needs to comply with all the legislative requirements according to the Australian government. This will help the company to have continuous improvement as it will be able to provide legislations that protect the company and its customers.
Deliver the presentation to the management team. Ensure you:
Seek input for improvements or additions to your approach to be incorporated into your summary report and portfolio documents. Ask questions and use active listening techniques.
Deliver your presentation in accordance with the deliverables and quality specifications outlined below.
Summarise the contents of your presentation in a one- to two-page written report, including recommended changes or additions. Ensure you:
Use an appropriate style and tone for business reporting
Use headings, paragraphs and full sentences (except in illustrations or bulleted lists).
Report
The Australian hardware is located in Sydney, NSW, due to the growing need of hardware materials for residential and commercial building and home improvements, the hardware is continuously growing.
Continuous Improvement Methodology
Australian Hardware is among the largest hardware’s in Australia whereby it has more than 138 stores and it has employed more than 10,000 individual across the country. Its first store in 1921, known as Percy’s Home Goods located in Sydney, the store deals with the manufacture and sale of household furniture’s. In 1982, Australian Hardware got listed in the Australian Stock Exchange whereby it had a float on public shares and the public could buy the shares. It is partly owned by the greenwright family whereby they are the CEOs and board of directors in the company. The company deals with a range of products namely from timber, hardware products, home improvements, gardens and paints
Mission: The mission of the company is to provide quality homewares, hardware, building materials, it is committed to provide its customers with value for their money through quality products, low prices, engagements, expert services and solutions and environmental responsibility.
Vision: to be the leading hardware and best home improvement company in Australia
For Australian hardware it will look at lean manufacturing, lean manufacturing focuses on improving productivity while reducing waste during the manufacturing processes, it uses five systems these are; – inventory control, quality improvement, and maintenance improvement and set up improvement. The wastes that lean manufacturing reduce are over production, inventory, transportation and processing inefficiency such as defects and motions.
It is also important that all the staff at the Australian hardware to be trained concerning the lean system as this will ensure that it is successfully implemented. The training should be conducted starting from the top management down to supervisory and then the employees.
The Australian hardware should consider the fishbone tool for problem/ opportunity identification, this tool will help in identifying what causes the problems, the effects and possible solutions. The procedures that the fishbone diagram uses are;-
- Identifying the problem
- Agreeing on the problem that has been identified, this will be written at the centre of a whiteboard, whereby a box will be drawn on it
Brainstorming on the major categories that caused the problem, this will be done by highlighting major headings such as Methods, Machines(equipment), people (manpower), materials and environment
Conclusion and Recommended
Australian hardware being a company that deals with hardware and homewares, it is focusing on the need to ensure continuous improvement. This will enable the company to increase its performance and productivity thus being able to be the lead in Australian markets.
Submit your summary report in accordance with the deliverables and quality specifications outlined below.
The report will be submitted in accordance with the deliverables and quality specifications.
Problem/opportunity identification and decision-making tools
Develop a communications strategy for implementing your proposed continuous improvement initiatives that includes:
two to three communications objectives
The purpose of a communication strategy will help the Australian hardware achieve their objectives such as engaging with their stakeholders, demonstrating their success and changing the perceptions and behaviours. The operation and communication objectives include:-
- staff training
- providing opportunities for the staff through coaching and training
- ensuring that the staff understand operation procedures
- all opportunities should be communicated to the staff
- Regularly gathering feedback, this will ensure operation strategies are achieved.
At least two audiences, for example, senior management, work teams, or individual employees
This has the main audience that will be used in the continuous improvement of the organization, the audience are both internal and external, internal are the staff and senior management and the external will include customers and politicians. The table below outlines the internal communication of the Australian hardware;-
|
Audience |
Procedures and policies |
Financial report |
|
staff |
Code of conduct policies Disciplinary action policy |
Meeting sales targets |
|
Senior management |
Implementing and maintain policies Risk reduction |
Budget allocation |
At least two methods of communication or media
Email/ newsletter- this is a one way communication strategy whereby email or newsletter updates can be made available to stakeholders, employees and customers. The updates are important as they strengthen the relationships among customers
Meetings – communication can also be done through meetings, whereby dialogues can be done through verbal and non-verbal communication. With meetings it is possible to get feedback immediately thus enhancing the operations of the hardware, this also enables to discuss customers complaints.
Develop a short (less than one page) procedure for informing teams of the outcomes of continuous improvement activities.
There is need to have appropriate procedures that will help address the internal communication of the Australian hardware, this will help address issues on documentation, receiving and responding to all outcomes on continuous development.
First the senior management will be responsible in coordinating all forms of communications that involve activities in continuous improvement of the Australian Hardware. The senior management will outline the appropriate communication procedures between the staff and the senior management. The needed roles and responsibilities in communication will be outlined to ensure the operation system works effectively.
The second procedure is to ensure the internal communication is outlined appropriately, this will include the use of;-
- Electronic emails
- Memos
- Meetings
- Company newsletters
- Staff meetings.
Develop a monitoring strategy for an area of team performance identified in the scenario. Include:
-
- targets (aligned with or consistent with organisational goals)
- standards (compliant with relevant legislation, policies and procedures)
- KPIs
- responsibilities for recording and reporting
- timelines
- Technology and systems used for capture, storage and reporting of performance information.
- A strategy for incorporating ideas for improvement in future planning.
|
Targets |
Standards |
KPIs |
Responsibilities for recording and reporting |
Timelines |
Technology and systems used for capture, storage and reporting of performance information.
|
Strategy for incorporating ideas for improvement in future planning |
|
Reducing the cost of operation |
Continuous improvement plan |
Reducing the cost of operation by 10% |
employees |
6 months |
Use of computerised systems or software such as XERO that will be used for financial procedures |
Strategic plans such as increasing sales volume and maintain the market shares |
Develop a short (less than one page) procedure for managers and special continuous improvement teams to run continuous improvement sessions; for example, if poor performance is observed through monitoring systems.
Your procedure should:
outline how to run a team session to capture opportunities for improvement and share required knowledge
Training consistently- all employees are required to be trained uniformly; this will ensure that all employees have acquired the same knowledge and skills; this will enable the company to expect the same performance from the employees.
Practical experiences- employees are required to gain the appropriate knowledge concerning the products and services that are being offered by the Australian hardware. Gaining product knowledge is important as this will help them give the appropriate information to customers and offer the right discounts and feedbacks.
Rewards and incentives- when employees make the appropriate improvements then they should be rewarded, this encourages thus increasing the productivity of the company.
Include at least one measure to ensure adherence to legislative requirements such as health and safety, privacy, or anti-discrimination.
To ensure that there is adherence to legislative requirements there is need to introduce programs on health and safety; the programs will have a worksheet whereby employees can provide feedbacks concerning their personal view regarding the health and safety of the Australian Hardware. The company will be able to view the worksheet and view the areas that need to be improved concerning the health and safety of the employees and clients. having this worksheet is a great opportunity for the senior management to effortless know on the areas that need to be improved and this will ensure continuous improvement.
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